Cryptocurrencies correlations

Knowledge of the correlation coefficient between assets gives a wide spectrum of advantages.
Modern portfolio theory allows you to create and optimise a portfolio with uncorrelated assets.
Negative correlation provides a possibility to hedge positions.

How to identify digital asset correlations

Correlation chart

The tool can help to understand the correlation coefficient changes in time.
Choosing the assets and the time frame you are interested in, brings the chart with the token rates and the correlation changes.

Correlation matrix

The tool helps to preselect crypto assets for the cryptocurrencies portfolio.
Select the assets you want to be compared with to see the correlation strengths between all of them.

Correlations with a coin or token

There is also the way to find the relation in returns from the particular crypto asset.

Or choose the asset from the list:

Stocks, precious metals and cryptocurrencies

Basing on past returns, crypto assets have not revealed any signs of correlation with stock indexes and metals in the long run.
The matrix of correlations between different asset classes confirms the thesis.

BTC ETH XRP GLD SLV ^DJI ^GSPC ^IXIC DX-Y.NYB
BTC 1.00 0.52 0.24 0.02 0.01 0.06 0.06 0.06 -0.01
ETH 0.52 1.00 0.27 0.08 0.09 0.11 0.11 0.12 -0.01
XRP 0.24 0.27 1.00 0.05 0.05 0.08 0.08 0.09 -0.04
GLD 0.02 0.08 0.05 1.00 0.80 0.03 0.04 0.03 -0.41
SLV 0.01 0.09 0.05 0.80 1.00 0.19 0.21 0.20 -0.42
^DJI 0.06 0.11 0.08 0.03 0.19 1.00 0.97 0.78 0.01
^GSPC 0.06 0.11 0.08 0.04 0.21 0.97 1.00 0.85 -0.02
^IXIC 0.06 0.12 0.09 0.03 0.20 0.78 0.85 1.00 -0.00
DX-Y.NYB -0.01 -0.01 -0.04 -0.41 -0.42 0.01 -0.02 -0.00 1.00

However the relation has changed since 12/03/2020 crash.
It is visible when looking at the chart comparing BTC and S&P 500 Index from the Black Thursday.



High market capitalisation cryptocurrencies correlations

BTC ETH BNB ADA XRP DOGE LTC LINK BCH ALGO MATIC ATOM XLM VET ETC
BTC 1.00 0.52 0.47 0.67 0.24 0.10 0.30 0.47 0.57 0.53 0.47 0.53 0.45 0.17 0.51
ETH 0.52 1.00 0.48 0.73 0.27 0.24 0.50 0.57 0.65 0.60 0.53 0.61 0.45 0.18 0.61
BNB 0.47 0.48 1.00 0.45 0.39 0.13 0.48 0.41 0.41 0.46 0.48 0.47 0.39 0.14 0.40
ADA 0.67 0.73 0.45 1.00 0.62 0.28 0.69 0.54 0.65 0.55 0.51 0.59 0.73 0.18 0.58
XRP 0.24 0.27 0.39 0.62 1.00 0.20 0.30 0.43 0.48 0.47 0.40 0.46 0.58 0.14 0.34
DOGE 0.10 0.24 0.13 0.28 0.20 1.00 0.04 0.23 0.26 0.18 0.11 0.21 0.33 0.08 0.31
LTC 0.30 0.50 0.48 0.69 0.30 0.04 1.00 0.48 0.63 0.57 0.50 0.57 0.46 0.18 0.59
LINK 0.47 0.57 0.41 0.54 0.43 0.23 0.48 1.00 0.44 0.61 0.46 0.55 0.46 0.15 0.45
BCH 0.57 0.65 0.41 0.65 0.48 0.26 0.63 0.44 1.00 0.53 0.49 0.56 0.45 0.16 0.61
ALGO 0.53 0.60 0.46 0.55 0.47 0.18 0.57 0.61 0.53 1.00 0.47 0.61 0.53 0.58 0.46
MATIC 0.47 0.53 0.48 0.51 0.40 0.11 0.50 0.46 0.49 0.47 1.00 0.44 0.47 0.48 0.40
ATOM 0.53 0.61 0.47 0.59 0.46 0.21 0.57 0.55 0.56 0.61 0.44 1.00 0.52 0.60 0.47
XLM 0.45 0.45 0.39 0.73 0.58 0.33 0.46 0.46 0.45 0.53 0.47 0.52 1.00 0.18 0.42
VET 0.17 0.18 0.14 0.18 0.14 0.08 0.18 0.15 0.16 0.58 0.48 0.60 0.18 1.00 0.15
ETC 0.51 0.61 0.40 0.58 0.34 0.31 0.59 0.45 0.61 0.46 0.40 0.47 0.42 0.15 1.00

negatively correlated and uncorrelated altcoins (measured in BTC)

token1 token2 correlation days
LTC XAUT -0.22 334
BCH XAUT -0.20 334
PAXG SNT -0.18 574
SNT XAUT -0.16 334
BCH PAXG -0.15 574
ONT XAUT -0.15 334
XAUT ZIL -0.15 334
XAUT ZEC -0.14 334
REP XAUT -0.14 334
EOS XAUT -0.13 334
REN XAUT -0.13 334
BEAM PAXG -0.12 574
LTC PAXG -0.12 574
ONT PAXG -0.12 574
BTM XAUT -0.11 334

The strongest crypto assets correlations (measured in BTC)

token1 token2 correlation days
PAXG XAUT 0.91 334
HT OKB 0.69 1255
NEO ONT 0.63 1311
BNB HT 0.54 1335
XMR ZEC 0.53 1576
ADA SNT 0.51 1477
KAVA XTZ 0.50 554
ATOM KAVA 0.50 554
BTM ONT 0.50 1311
EOS ONT 0.50 1311
DASH XMR 0.49 1576
ATOM XTZ 0.49 907
MIOTA ONT 0.49 1311
COMP SNX 0.49 481
COMP MKR 0.48 481